Correlation Between Keda Clean and Hunan Investment
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By analyzing existing cross correlation between Keda Clean Energy and Hunan Investment Group, you can compare the effects of market volatilities on Keda Clean and Hunan Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Keda Clean with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Hunan Investment.
Diversification Opportunities for Keda Clean and Hunan Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keda and Hunan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Keda Clean is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Keda Clean Energy are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Keda Clean i.e., Keda Clean and Hunan Investment go up and down completely randomly.
Pair Corralation between Keda Clean and Hunan Investment
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.89 times less risky than Hunan Investment. The stock trades about -0.04 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 524.00 in Hunan Investment Group on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Hunan Investment Group or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Hunan Investment Group
Performance |
| Timeline |
| Keda Clean Energy |
| Hunan Investment |
Keda Clean and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Hunan Investment
The main advantage of trading using opposite Keda Clean and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean position performs unexpectedly, Hunan Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Keda Clean vs. JuneYao Dairy Co | Keda Clean vs. Namchow Food Group | Keda Clean vs. Youyou Foods Co | Keda Clean vs. Beijing Sanyuan Foods |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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